‘HD audio’ has been a buzzword for the last few years, as Apple and several record labels have been working on higher-resolution audio formats to repackage and resell older music. But the format took a body blow this weekend when former NY Times columnist David Pogue put musician Neil Young’s new $400 HD Audio PonoPlayer up against a regular old iPhone using a ‘blind trial,’ in which the HD PonoPlayer appears to have lost…

“Most of you aren’t hearing it the way it’s supposed to sound,” Dr. Dre said in a Beats Audio promotional video. “And you should — hear it the way I do.”

“What we’re trying to do here is fix the degradation of music that the digital revolution has caused,” he said. “It’s one thing to have music stolen through the ease of digital processing. But it’s another thing to destroy the quality of it. And that’s what’s happening on a massive scale.”

You would be forgiven for thinking that the late Steve Jobs enjoyed digital music on his home stereo through his iPod or MacBook. Quite the contrary, though, despite him single-handedly taking the music industry by storm with the iPod and the online iTunes digital music store a decade ago, Apple’s cofounder preferred listening to vinyl. In an interview with Walt Mossberg and Peter Kafka at the “D: Dive into Media” conference, musician Neil Young said the digital age “degraded our music” quality-wise.

A better techology is needed, Young cried. Conceivably, only one man would have been up to the task:

Steve Jobs as a pioneer of digital music and his legacy is tremendous. But when he went home, he listened to vinyl. And you’ve got to believe that if he’d lived long enough, he would have done what I’m trying to do.

Bloomberg expands on that saying that Jobs was actually working on a high-fidelity music service:

Musician Neil Young said he worked with Steve Jobs on a high-fidelity music service before Apple (AAPL) Inc. shelved the project.

While chief executive officer of Apple, Jobs sought to offer uncompressed music digitally, Young said today at an AllThingsD.com media conference in Dana Point, California. Apple “pretty much” has stopped working on the project, said Young, a member of the Rock and Roll Hall of Fame who is known for the songs “Harvest Moon” and “Heart of Gold.”